HOLD ON TIGHT | SOFI STOCK

Sofi seems to finally be picking up some steam and there are many indicators finally pointing in the right direction but are these actual indicators of anything at all and should you pay attention to them and where does Luke think Sofi is going next well I'll answer all those questions for you today right after you hit that like button guys please hit that like button if you like getting the truth without the hype CU that's exactly what you're going to get today in regards to this stock so there's going to be some good things and some not so great things so let's kind of put it all together here so then we can kind of look at Sofi and see exactly where it's going next now kind of for context here Sofi has been on a great run over the past three weeks or so I mean we got a chance to buy Sofi in the fives just three weeks ago during that kind of freakout time that was just a few weeks ago and you're up almost 50% on those buys now you only got a few hours at those prices and our Mastermind members saw those Buys in real time along with buys of paler in the $20 range guys there was buy alerts going off all over the place that morning whenever the market had that freak out there and that's the way it works you just get a very small window of time to actually buy great stocks on a great discount like that that right there is one of the big benefits with the group and I also release my full Bull and be case for Sofi stock specifically complete with two-year price targets based upon valuation not hype not hope not crazy projections based upon actual valuation so I may have list something special that expires this weekend for you guys at the pin comment down there those of you looking to join my group and be a part of that Mastermind membership see everything you get there we'll talk about more of that at the end because we got to get into more in regards to sofa so I'll tell you exactly where I think SOI is going here in just a second but let's look at some of those indicators and some other uh points that people like to throw out there and see if there's actually any value in looking at that or not so first up is the Kramer endorsement oh yes unfortunately once again we got the Kramer endorsement for Sofi which typically is the death nail for a lot of stocks now it's not always that sometimes he's absolutely right and that's kind of what happens when you make a thousand different predictions over the course of a year it's kind of a common deal and you can just point to your wins completely ignore your losses and people think you know a whole heck of a lot about the stock market that's just kind of the way it works whether we like it or not you know YouTubers do the same exact thing we're all guilty of it there that is how it works so does this matter Kramer endorsing your stock or not in regards to the actual stock in regards to Sofi specifically the answer to that is no I'm sorry he has no clue as to whether or not they're going to beat on EPS whether or not they're going to raise he knows nothing about he has no impact on that sort of things I'm sorry people aren't not going to use Sofi products or G or anything else because Kramer says he likes the stock it's just not how the stock market works at all so this has absolutely zero to do with the stock itself and what's going on with Sofi right now I'm sorry I don't like the fact he did it because it seems like every time he endorses something it goes down but I also know it really makes no material difference whatsoever it means nothing nobody cares outside of his audience I can assure you hedge funds are not looking around and going o Kramer endorsed that let's tank it or vice versa oo Kramer endorses it now we're going to buy it we think it's a buy just not how it works at all that's simply for an audience and it's strictly for his audience that watches his show that's it that's the only people that actually matters to and unfortunately most of those folks have absolutely zero influence over the stock market number two short interest in Sofi now I'm going to attack this from a little bit of a different angle here and I want you guys to kind of understand that and I know it's going to make some of you guys upset but hey that's exactly what you're here for so that's exactly what you're going to get now the last time we had a squeeze situation say the stock did have a great run got up almost to 10 bucks or so and guess what happened it was just a month or two later it was cut right back in half almost back down that's why when I think about short interest or anything else like that does it matter to the stock long term the answer to that is absolutely not it does not there was a time in every Stock's Journey take your Nvidia 100,000% gain since the beginning there there were plenty of times back in the day where it had massive short interest there's been plenty of times just during this current run where it has had massive short interest and guess what yeah when it 2x it had massive short interest and guess what it did oh it just went on to continue to multiply multiply multiply from there now you're sitting on a 10x way back from those 2022 lows in regards to the stock itself so clearly it does not matter a bit now if you are trading Sofi that's a completely different story and I understand that but for a long-term Buy and Hold investor somebody who is caring about what happens to Sofi two years from now 5 years from now 10 10 years from now and I hope it turns into the Behemoth I think it can turn into in regards to those 10 years I'm not looking at the short interest at all I don't remember buff it making a decision on who should I buy that oh the short interest is kind of high let me lay off right now because the short interest is kind of high on that stock don't think it's something he really cares about all that much and it's not something I care about either I don't own Sofi for the possibility of a short squeeze that's what Traders do and if you want to trade based upon that okay may look that way I don't know I don't view it from that perspective so I don't freaking care care about the short interest no I have never gone in my 25 years of doing this I've never gone and looked up the short interest on a stock and then made a decision based upon that I don't I don't care I don't care what the I don't care how much of the float is eaten up by shorts don't care doesn't matter to me it's completely irrelevant what I care about is valuation that's it and everything else hey happens to get a short squeeze great it also means it's probably going to run further than it should and it's going to come back down as well and a lot of people are going to fomo in that is why folks end up buying high and selling low so another thing that gets talked about a lot that doesn't freaking matter in the end to a long-term Buy and Hold investor Trader completely different so if somebody's out there discussing it and they're talking about it from a trading perspective understand long-term Buy and Hold don't even shouldn't even enter your Calculus in regards to the stock number three rate Cuts coming now we've demonstrated here on this channel before where rate hikes benefit a bank and specifically we've talked about SOI before and others because it increases the margin that you can charge versus what you're actually having to pay out in regards to interest obviously when interest rates are down at zero that's the reason why your savings rate is you know 0.00001% or whatever the heck the you know the ridiculous low rates the banks are doing because they're just trying to squeeze as much margin as possible whenever rates go up it gives you some breathing room now there's a lot of people out there like oh my gosh now that rates are going to start getting cut it's going to hurt Sofi the exact opposite is true because these guys sell loans and all the loans that they've made with these higher interest rates as interest rates go down become more valuable and you can sell them off and instead of having to wait five years to realize all the gains on that loan you can take a little bit of a less gain and realize all of it right now meaning we're going to see more profits to the bottom line as rates go down if Sofi chooses to increase selling their loan book which is a very very common move that different banks do in a variety of different ways so this one actually does matter and is something that you need to understand the mechanics of what's going on and kind of how it affects the bottom line now what we don't know and what everybody speculates about and you guys know I don't like to speculate is how aggressive are they going to sell those they may choose to not sell right off the bat they may choose to dump a whole lot of them right off the bat we don't know how they're going to choose to play this over the long run so that remains to be seen and I can't accurately project what it is but what I do know is it gives them the flexibility to absolutely boost their EPS to whatever the heck they want to and obviously improve margins and everything else in regards to how the business works so this absolutely matters and it absolutely is an indicator that actually tells you something that's going to tangibly hit the bottom line for Sofi stock or give management the opportunity to pull that lever at any point time again it's another thing that gives us a cushion if something else doesn't go as well this is another Leo that they can turn in order to create more profits for themselves at the end of the day number four institutions are buying more Sofi we continue to see institutional ownership increase that is good news for us as shareholders and the reason why is quite simple because as a stock kind of goes over here from the Traders into more of these institutional investors they don't trade in and out of stocks like Traders do where they're trading in and out of positions all day long and all other crap like that whatever not doing that game so as you see institutional uh ownership go up with the exception of Tesla you tend to see volatility come down in the stock you tend to see more normal moves more moves that make sense not hype runs and then big crashes and hype runs and crashes and all kinds of other stuff like that that really kind of seem more random than anything else yeah that's because the trader controlled and we don't know what the Traders are thinking now yes this absolutely matters to Sofi and it also shows a belief in Sofi as a company as institutional ownership increases now we need to see the increase aell lot more but we're trending in the right direction there so we're not there yet we're not to a point where we're not going to see Wild swings in the stock yet but we're seeing that Trend in the right direction now I'm going to caution you with one thing and this is a mistake that we make as retail all the time and that is we start thinking about oh institutional owners going up and we start trying to add you know that should add x amount of dollars to the market cap no it doesn't actually it doesn't add anything to the market cap because it's not providing anything in regards to EPS or anything else of that nature doesn't give you a higher valuation it doesn't give you anything tangible like that so yes it is a positive but it's a positive from the aspect of it providing some stability to the stock and some institutional ownership who aren't going to just freak out because I don't know some random you know news dropped about something and now all a sudden we just need to sell because I don't know reasons whatever you get less of that and you get more stability however it does not add to the valuation it does not make the market cap magically worth a lot more it do add a $500 billion do to the market cap or anything ridiculous out that sometimes gets pushed it does none of that so just make sure you're not making that mistake whenever you're thinking about that point specifically all right so where do I see Sofi going next now to be very very clear we are seeing movement in the right direction in terms of ftech basically we're not out of the dogghouse yet but you can definitely see the door is open and the light is coming in in regards to fch across the board you're seeing this in a lot of stocks not just Sofi you're seeing it even in pain pal we're even seeing it there so the door has finally opened up and yes I still have it as a buy it's on my watch list I'm going to add more shares especially if Wall Street gets a little bit silly we get a little bit of a dip I'm going to add on the dip still and I could if that door continues to stay open and we start to creep towards it see the stock start to March back to that $10 Mark or so I mean that is absolutely where the momentum is going right now at the stage and remember it is still mostly Trader controlled and Traders do a lot of trading based upon momentum same thing with the price Target same thing with everything else a lot of that is all based upon the momentum of the stock and where it's going at that particular time and where all the technical lineup and all that other stuff like that that Traders love to talk about so yeah I could absolutely see it moving in that direction towards that $10 Mark towards the end of the year however I am not banking on any of that we have all kinds of CR we have you know the FED actually executing rate hikes how much are they or excuse me rate Cuts how much are they going to cut those rates how much is the election going to be I mean it's going to be chaotic enough here in the US but how chaotic is it going to be there's still a lot of unknowns there that could provide Traders reasons to beat down stocks and unfortunately I can't say with full confidence that Sofi is in a spot where it won't have an effect on that and on that March up although I see that March up to you know close to that $10 range or so being the most likely I also think we're still going to stay kind of range bound here for the rest of the year until we get through a lot of the rest of the year and a lot of the stuff that's kind of going on for the rest of the year now of course Sofi could always change that with blowout earnings and then incredible you know they always beaten raise but maybe giving us a really big beat or maybe not necessarily a huge beat but a massive raise and guidance that could absolutely be something too that absolutely continues to push this stock forward but what I'm seeing and what the good news is and the takeaway I want from you guys is you're seeing that door finally open for fintech in general and that is bullish for Sofi overall and if you want to see the exact price that I have Sofi at in regards to in two years exactly where I think it'll be at based upon valuation not hype not hope not any of that other stuff based upon the numbers that the company has given us 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